Analysis and trading tips for EUR/USD on April 27 (US session)
April 27, 2023 1:23 pm
As expected, consumer confidence in the Euro area remained unchanged compared to the previous month, maintaining market balance ahead of the key US GDP report for the 1st quarter of this year. As for the price test of 1.1044, it occurred when the MACD line was already far from zero, so the downward potential was limited.
Ahead is a report on US GDP, which will be decisive for the market’s direction. are key reports from the US, namely the change in the volume of orders for durable goods and the balance of foreign trade. Good numbers will lead to a sell-off in EUR/USD, while weak data could harm demand for risky assets, as a slowdown in the US economy will eventually affect the rest of the world. Data on weekly jobless claims and the change in the volume of pending home sales will be of little interest.
For long positions:
Buy euro when the price hits 1.1060 (green line on the chart) and then take-profit when the quote reaches the level of 1.1111. Growth will continue if the upcoming US data matches economists’ forecasts. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.1033 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1060 and 1.1111.
For short positions:
Sell euro when the price reaches 1.1033 (red line on the chart) and take-profit at the level of 1.0988. Pressure will return if the US reports good statistics. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold after the level of 1.1060 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1033 and 1.0988.
What’s on the chart:
Thin green line – entry price at which you can buy EUR/USD
Thick green line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line – entry price at which you can sell EUR/USD
Thick red line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
As expected, consumer confidence in the Euro area remained unchanged compared to the previous month, maintaining market balance ahead of the key US GDP report for the 1st quarter of this year. As for the price test of 1.1044, it occurred when the MACD line was already far from zero, so the downward potential was limited.
Ahead is a report on US GDP, which will be decisive for the market’s direction. are key reports from the US, namely the change in the volume of orders for durable goods and the balance of foreign trade. Good numbers will lead to a sell-off in EUR/USD, while weak data could harm demand for risky assets, as a slowdown in the US economy will eventually affect the rest of the world. Data on weekly jobless claims and the change in the volume of pending home sales will be of little interest.
For long positions:
Buy euro when the price hits 1.1060 (green line on the chart) and then take-profit when the quote reaches the level of 1.1111. Growth will continue if the upcoming US data matches economists’ forecasts. However, before buying, make sure that the MACD line is above zero and is starting to rise from it.
Euro can also be bought after the level of 1.1033 is tested twice, but the MACD line should be in the oversold area as only by that will the market reverse to 1.1060 and 1.1111.
For short positions:
Sell euro when the price reaches 1.1033 (red line on the chart) and take-profit at the level of 1.0988. Pressure will return if the US reports good statistics. However, before selling, make sure that the MACD line is below zero and is starting to drop down from it.
Euro can also be sold after the level of 1.1060 is tested twice, but the MACD line should be in the overbought area as only by that will the market reverse to 1.1033 and 1.0988.
What’s on the chart:
Thin green line – entry price at which you can buy EUR/USD
Thick green line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
Thin red line – entry price at which you can sell EUR/USD
Thick red line – estimated price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line- it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp fluctuations in the rate. If you decide to trade during the release of news, then always place stop orders to minimize losses. Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes.
And remember that for successful trading, you need to have a clear trading plan. Spontaneous trading decision based on the current market situation is an inherently losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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